How the PCAOB could assure real independence.
By Kayleigh Padar
CPA Trendlines
Is the U.S. ready to move to a third-party payer system for audits?
The author of an article in the influential New York State Society’s CPA Journal magazine says the time has come to bring the discussion into the open.
In the article, Michael Doron, Ph.D, CPA, an associate professor in the department of accounting and information systems at California State University in Northridge, examines relationships between auditors and the public in countries which have more regulation, the results of an experiment with a third-party payer and how the United States government handles similar regulation in other industries.
Although he recognizes changing this process could be seen as “politically radical,” evidence shows it could work. Organizations such as the Public Accounting Oversight Board (PCAOB) already regulates the American auditing profession. In addition to being seen as radical, he acknowledges the shift would be a “tremendous change.”
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